Question Answer
Want Things we wish we could have
Need Things we must have to survive
Good Something that can be physically weighed or measured
Factor of Production When economic resources, such as natural and human resources, are used to produce goods or services
Economic Resource A resource that could be used to make or obtain goods or services
Services Tasks that a person or machine performs to satisfy non-material things
Opportunity Cost What a person gives up when making one choice over another
Natural Resources A resource that comes from the air, water, or earth
Human Resources A person who contributes mental and physical energy into the production process
Capital Resource A resource, such as equipment or machine, that makes it possible to produce goods or services
Entrepreneurial Resource A person who recognizes a business opportunity and organizes, manages, and assumes the risks of a business enterprise
Scarcity The problem of unlimited wants and limited resources that affects all societies
Business Cycle The repeated rise and fall of economic activity over time that includes four phases: expansion, peak, contraction, and trough
Recession A period of decline when spending decreases and unemployment rises
Depression A very severe recession that lasts for several years
Recovery A period of economic growth or expansion after a recession or depression
Economic Indicators Important data or statistics that measure economic activity and business cycles
Gross Domestic Product The dollar value of all final goods and services produced in a nation in a year and includes Consumer goods and services, business goods and services, government goods and services, and exported goods and services.
Inflation A prolonged rise in the cost of goods and services
Unemployment Rate The percentage of the workforce that is out of work
Comparative Advantage Specialization of production by a country in those areas it is best at doing.
Free Trade Policy encouraging few limitations and little government involvement in trade.
Embargo A government ban that stops the import or export of certain goods or trading with a certain country.
Exports Goods made in one country and sold in another.
Imports Foreign-made goods brought into a country.
Multinational Company Firm that does business in other countries and has offices worldwide.
Quota A fixed limit on the export or import of a product
Specialization Concentration of efforts in a particular area or field.
Tariff Special tax on goods made in another country and sold in the United States
Trading Partners Countries that are the United States' main producers and consumers